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When searching, all matching text should be highlighted. Search and replace should move to the next match before the user presses replace - currently the next match will be found and replaced without any indication as to where it is in the document.
I can't replicate this using PressGang 1.8, are you able to replicate this at all still Matt?
This must have been a new feature added to Ace. Previously the search feature had no highlighting, and gave no indication of the text that would be replaced next. The new functionality in ACE fixes this request.